Netweb Technologies India Limited (NETWEB) AI Stock Analysis

• Market Cap: ₹192.06B
• Dividend Yield: 0.08%
• Average Volume (3M): 373.61K
• Price to Earnings (P/E): 107.2
• Beta (1Y): 1.25
• Revenue Growth: 47.18%
• EPS Growth: 38.90%
• Country: IN
• Employees: 362
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 12.90
• Shares Outstanding: 56,940,685
• 10 Day Avg. Volume: 306,894
• 30 Day Avg. Volume: 373,613
• PEG Ratio: 1.64
• Price to Book (P/B): 16.11
• Price to Sales (P/S): 7.47
• P/FCF Ratio: -220.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹4,110.00
• Price Target Upside: 35.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹3,555.00 ▲(17.52% Upside)
• Action: Reiterated Date: 01/06/26
• Date: Action: Reiterated 01/06/26

Score is anchored by strong financial performance (rapid growth, improving profitability, and low leverage), but is held back by weak cash-flow conversion (negative operating and free cash flow) and a very expensive valuation (P/E 137). Technical indicators are mixed, adding limited support.

Positive Factors

Sustained Revenue Growth

A ~31% five-year revenue CAGR signals durable demand and successful market penetration across multiple end markets. Sustained top-line expansion supports scale benefits, long-term customer relationships, and the ability to reinvest in product development and service capabilities over the next 2–6 months and beyond.

Improving Profitability and ROE

Rising net margins and a 21.6% ROE indicate improving operational efficiency and effective capital deployment. These trends reflect structural gains in pricing, cost control, or higher-margin services that are likely to sustain shareholder returns and competitive positioning over the medium term.

Very Low Financial Leverage

Extremely low leverage provides balance-sheet flexibility to pursue growth investments, absorb shocks, or finance contract working capital without material refinancing risk. This structural strength supports long-term stability and the capacity to capitalize on large public or institutional projects.

Negative Factors

Weak Cash-Flow Conversion

Negative operating and free cash flows despite reported profits signal that earnings are not converting into cash. Over the medium term this can constrain reinvestment, increase reliance on external funding for working capital or capex, and expose the business to liquidity stress during down cycles.

Decline in EBITDA Margin

A shrinking EBITDA margin suggests rising operating costs or one-off pressures that erode core operating profitability. If sustained, this undermines the company’s ability to finance growth organically, weakens margin resilience, and may pressure future net-margin and return improvements.

Large Cash Holdings May Be Underutilized

Significant cash balances reduce financial risk but can indicate missed opportunities if not deployed into high-return investments, M&A, or product scaling. Over a multi-month horizon this opportunity cost can limit revenue acceleration and long-term return on equity expansion.

Netweb Technologies India Limited Business Overview & Revenue Model

Company Description

Netweb Technologies India Limited designs, manufactures, and sells high-end computing solutions (HCS) in India. The company offers supercomputing systems; private cloud and hyperconverged infrastructure (HCI); artificial intelligence (AI) systems and enterprise workstations; high performance storage solutions; data center servers; and software and services. It sells its products under the Tyrone brand name. The company serves information technology, information technology enabled services, entertainment and media, banking, financial and insurance, national data centers, defense, education, and research development institutions. Netweb Technologies India Limited was incorporated in 1999 and is based in Faridabad, India.

How the Company Makes Money

Netweb Technologies India Limited generates revenue through multiple streams, primarily by selling hardware products such as servers and storage systems, which are tailored to meet the specific needs of various industries. Additionally, the company earns income from its services, which include system integration and consultation, aimed at enhancing clients' IT capabilities. Key revenue streams also include maintenance and support services provided to existing customers. Significant partnerships with technology vendors and participation in government projects further bolster NETWEB's earnings, allowing the company to leverage innovative technologies and expand its market reach.

Netweb Technologies India Limited Financial Statement Overview

Summary

Strong fundamentals overall: high income statement score (88) on ~31% 5-year revenue CAGR and improving net margins (to 9.96% in 2025), plus a solid balance sheet (82) with very low leverage (D/E 0.015) and rising ROE (21.58% in 2025). The main drag is cash flow quality (73) with negative operating cash flow and negative free cash flow in 2025, indicating weaker earnings-to-cash conversion.

Income Statement

Netweb Technologies has demonstrated robust revenue growth with a CAGR of approximately 31% over the past five years. The gross profit margin has consistently remained above 20%, indicating efficient cost management and strong competitive positioning. The net profit margin has improved significantly, reaching 9.96% in 2025, up from 5.32% in 2024, reflecting improved operational efficiencies. However, the EBITDA margin decreased in 2025, suggesting potential challenges in managing operating costs.

Balance Sheet

The company's financial leverage is low with a debt-to-equity ratio of 0.015, indicating prudent financial management. The equity ratio has improved to 59.37%, reflecting a strong capital base. Return on equity has increased significantly over the years, reaching 21.58% in 2025, indicating efficient use of shareholder funds. However, a notable portion of assets is held as cash, which may suggest underutilization of funds for growth opportunities.

Cash Flow

Although the company has shown a negative free cash flow in 2025, driven mainly by capital expenditures, the operating cash flow has remained negative, raising potential concerns over cash management. The free cash flow to net income ratio is negative, which may indicate that earnings are not being converted into cash efficiently. However, the company's investing cash flow is positive, suggesting strategic investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.01B	11.43B	7.24B	4.45B	2.47B	1.43B
Gross Profit	3.04B	2.66B	1.78B	869.99M	605.75M	366.29M
EBITDA	1.88B	1.58B	1.14B	706.93M	347.17M	149.21M
Net Income	1.30B	1.14B	759.03M	469.36M	224.53M	82.30M
Balance Sheet
Total Assets	0.00	8.93B	6.12B	2.66B	1.49B	1.10B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.80B	896.75M	70.92M	20.26M	20.24M
Total Debt	0.00	79.49M	95.73M	356.03M	344.84M	305.38M
Total Liabilities	-5.30B	3.63B	1.90B	1.72B	1.04B	883.78M
Stockholders Equity	5.30B	5.30B	4.23B	936.66M	443.70M	218.17M
Cash Flow
Free Cash Flow	0.00	-386.86M	-11.01M	138.68M	-1.97M	-114.37M
Operating Cash Flow	0.00	-132.11M	183.67M	271.32M	51.87M	-98.67M
Investing Cash Flow	0.00	1.12B	-1.45B	-140.21M	-54.66M	-18.65M
Financing Cash Flow	0.00	-179.71M	2.09B	-80.45M	2.81M	117.58M

Netweb Technologies India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3024.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NETWEB, the sentiment is Positive. The current price of 3024.95 is below the 20-day moving average (MA) of 3192.93, below the 50-day MA of 3209.69, and above the 200-day MA of 2785.47, indicating a bullish trend. The MACD of 54.65 indicates Negative momentum. The RSI at 69.59 is Neutral, neither overbought nor oversold. The STOCH value of 76.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NETWEB.

Netweb Technologies India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONATSOFTW	69 Neutral	₹79.39B	17.80	―	2.00%	12.39%	59.77%
NETWEB	67 Neutral	₹192.06B	107.22	―	0.08%	47.18%	38.90%
MAPMYINDIA	66 Neutral	₹63.58B	47.98	―	0.21%	22.12%	7.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEJASNET	57 Neutral	₹59.79B	-7.66	―	0.55%	-17.23%	-185.73%
ASTRAMICRO	51 Neutral	₹86.93B	54.17	―	0.24%	11.44%	23.56%

Netweb Technologies India Limited Corporate Events

Netweb Technologies Scores 69 in NSE Sustainability ESG Assessment

Netweb Technologies India Limited has received an ESG score of 69 from NSE Sustainability Ratings and Analytics Limited, a SEBI-registered ESG Rating Provider, based on publicly available data for the financial year 2024-25. The company disclosed the rating to the stock exchanges in compliance with SEBI’s Listing Obligations and Disclosure Requirements, signaling a formal acknowledgment of its environmental, social, and governance performance to investors and other stakeholders.

Netweb Technologies to Engage Investors at Nuvama India Conference on 9 February

Netweb Technologies India Limited has announced that its officials will participate in the Nuvama India Investor Conference, themed “India: Shoring up Self-Reliance,” at the Grand Hyatt Mumbai on 9 February 2026, where they will hold one-to-one and group meetings with analysts, advisors and investors. The company emphasized that only publicly available information will be discussed and no unpublished price-sensitive information will be shared, underscoring its commitment to regulatory compliance while seeking to deepen engagement with the investment community and maintain transparent communication with capital market stakeholders.

Netweb Technologies Publishes Q3 FY2025 Unaudited Results in Leading Dailies

Netweb Technologies India Limited has notified the stock exchanges that it has published its unaudited financial results for the quarter ended 31 December 2025 in leading newspapers. In compliance with SEBI’s listing obligations, the company disseminated these results through the All India edition of Financial Express (English) and the Delhi NCR edition of JanSatta (Hindi), reinforcing its regulatory transparency and ensuring wider public and investor access to its quarterly financial performance disclosures.

Netweb Technologies Posts Record Q3 on Surging AI Systems Revenue

Netweb Technologies India Limited reported a record-breaking third quarter for FY26, posting its highest-ever income and profit driven largely by its AI systems business. Operating income for Q3 FY26 rose 141% year-on-year to ₹8,049.3 million, operating EBITDA increased 127.1% to ₹979.5 million with a 12.2% margin, and profit after tax surged 146.7% to ₹733.1 million with a 9.0% margin, while the company maintained a net cash position with net debt at negative ₹1,900.8 million as of December 2025. AI systems were the primary growth engine, contributing about 64.2% of Q3 FY26 revenue and 47.6% of revenue for the first nine months of FY26, underscoring Netweb’s strengthening position in high-end AI and computing solutions and supporting rapid, profitable growth across its key enterprise and government customer segments.

Netweb Technologies Unveils Q3 FY26 Earnings Presentation

Netweb Technologies India Limited has released its earnings presentation detailing the unaudited standalone financial results for the quarter ended 31 December 2025. The disclosure, shared with both BSE and NSE, is part of the company’s ongoing public market communication and is likely intended to update investors and other stakeholders on its recent financial and operational performance, supporting transparency and reinforcing its positioning as a key player in India’s high-end computing solutions market.

Netweb Technologies Schedules Investor Meeting with C-Worldwide Asset Management

Netweb Technologies India Limited has announced a scheduled meeting with C-Worldwide Asset Management, set to take place on November 28, 2025. The meeting, which will be conducted in person, aims to discuss publicly available information with analysts and investors, ensuring no unpublished price-sensitive information is disclosed. This engagement reflects the company’s commitment to transparency and maintaining strong investor relations.